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Bill

SB 1465

RELATING TO PASS-THROUGH ENTITY TAXATION.

2026 Regular Session Introduced by Ron Kouchi

Hawaii bill addressing pass-through entity taxation stalled in conference committee after Senate-House disagreement over tax treatment of S-corps, partnerships, and LLCs.

House Conferee(s) discharged.
#partnerships #pass-throughentities #scorporations #taxation
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Bill Summary · SB 1465

Legislative bill overview

SB 1465 addresses taxation of pass-through entities (such as S-corporations, partnerships, and LLCs) in Hawaii. The bill appears to modify how these business structures are taxed at the state level, though specific provisions are not detailed in the action history provided. The measure has faced disagreement between the Senate and House, requiring a conference committee to resolve differences.

Why is this important

Pass-through entity taxation directly affects small business owners, professional practices, and investors in Hawaii. Changes to how these entities are taxed can significantly influence business formation decisions, profitability, and the state's competitiveness for attracting or retaining businesses. The tax treatment also impacts state revenue, making this relevant to the broader state budget.

Potential points of contention

  • Tax rate or calculation methodology – The Senate and House disagreement suggests differing approaches to how pass-through entities should be taxed or what tax burden they should bear
  • Business competitiveness vs. revenue generation – Balancing whether lower taxes attract businesses versus maintaining adequate state funding
  • Scope of affected entities – Determining which business types qualify as pass-through entities and whether certain industries receive different treatment

Compiled from official sources — confirm details with the bill’s official record.

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